2.08.2019 – 401(k) Special Election for Profit Sharing

401(k) Special Election for Profit Sharing
With a profit sharing pay-out coming on or around March 8^th 2019, it’s important to understand the Special Election process. It’s also a good time to explain what you are eligible for in terms of Company match and contributions to your 401(k).As with last year’s pay-out, to make a contribution (and get the company match, if eligible) you must make a selection in the SPECIAL ELECTION section under CONTRIBUTIONS on the Fidelity website. Your Regular Elections which are currently on file will not apply to your profit sharing award.The company will contribute money in your 401(k) based on your profit sharing award. All Flight Attendants with at least one year of company seniority will be eligible for the following:

• A 3% Company contribution. The 3% Company contribution will be made regardless of how much is designated as a Special Election.
• A Company match of 2.5%. In order to receive the Company match, of 2.5%, Flight Attendants will need to make a Pre-tax or Roth Special Election contribution of at least 2.5%.

Special Elections can be designated as either Pre-Tax or Roth, but Company match and contributions are always treated as Pre-Tax Company contributions. Even if you elect 100% of your contribution as a Pre-Tax Special election, Social Security and Medicare taxes will still be deducted from this pay-out and those taxes will be subject to withholding.

Any Flight Attendants in an overpayment situation will have that amount deducted from their profit sharing award.

Special Elections need to be completed by 4:00 p.m. ET on February 22^nd in order to be processed in time for the profit sharing pay-out and can be made by logging into http://www.netbenefits.com/aa or by calling the American Airlines 401(k) Center at Fidelity at (800) 354-3412. Administrative questions and concerns can be directed to your American Airlines 401(k) team at [email protected] .

It is important to remember that Special Elections do not reset each year, so now would be a good time to make sure the percentages in your Special Election contributions are up to date and an accurate reflection of the 401(k) deferral that you would like to have made from your profit sharing award in March.

You can find more information about 2018 Profit Sharing on jetnet at: https://newjetnet.aa.com/docs/DOC-33801?sr=search&searchId=85bc9a90-4548-41aa-83de-08c028965b4d&searchIndex=0

-Kim Tuck
Retirement Specialist
Association of Professional Flight Attendants